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If a reserve bank wishes to implement a deflationary open-market policy, it will sell government securities in the open market. This action reduces the amount of money in circulation, leading to higher interest rates and discouraging borrowing and spending by consumers and businesses. The overall effect aims to curb inflation by decreasing demand in the economy, thereby stabilizing prices. However, it may also risk slowing economic growth if not managed carefully.

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if the reserve bank wishes to implement a deflationary open market policy?

If the Reserve Bank wishes to implement a deflationary open market policy, it would sell government securities in the open market. This action reduces the money supply, as buyers pay for these securities, leading to higher interest rates and decreased borrowing and spending in the economy. The goal is to curb inflation and stabilize prices by reducing excess liquidity. Ultimately, this policy aims to foster a more balanced economic environment.


What will happen if SARB implement a deflationary open market policy?

Central bank will sell securities to the commercial banks


What is the Federal Reserve System in charge of what policy?

monetary policy


What will happen when the reserve bank wishes to implement a deflationary open-market policy?

There will be changes made to interest rates as well as a deliberate depreciation of the face value of the currency. There will also be more purchases on the open market of government-backed and foreign securities as well as more spending on public goods or services.


Decreasing the reserve requirement involves which type of economic policy?

Monetary Policy


Who framed monetary policy?

reserve bank of India frames monetary policy


Who frames Indian monetary policy?

reserve bank of india frames monetary policy


The Federal Reserve is the government's what?

setting foreign policy


Who regulates the nation's monetary policy?

The Federal Reserve


What agency handles monetary policy?

The Federal Reserve


Monetary policy in the US is carried out primarily by what agencies?

The Federal Reserve Monetary_policy_in_the_US_is_carried_out_primarily_by_which_of_the_following_agencies


What has the author John P Ranchett written?

John P. Ranchett has written: 'The Federal Reserve' -- subject(s): Economic policy, Board of Governors of the Federal Reserve System (U.S.)., Monetary policy, Federal Reserve banks